The Federal Supreme Court decided that those who have overdue debts may have documents canceled such as the National Driver’s License (CNH), passport and even be barred from public tenders and bids. The measure is effective immediately and depends on appeal via court action with analysis on a case-by-case basis.
The decision was considered constitutional in the Code of Civil Procedure (CPC) on February 10, 2023. It determines that the judge can order coercive measures against defaulters via court order.
Luiz Fux, minister of the STF, affirms that the measure is valid as long as “do not advance on fundamental rights and observe the principles of proportionality and reasonableness”, in addition, the judge must always “comply with the values specified in the legal system of safeguarding and promoting the dignity of the human person.”
The Workers’ Party (PT) launched a Direct Action of Unconstitutionality (ADI) questioning the measures that could be imposed by judges. The answer given by the rapporteur states that this practice will only be used as a last resort, when and in the least serious way possible.
This means that judicial collection will only be used if the debtor does not respond to alternatives to settle the debt after being contacted, which is provided for by law.
Brazil broke a record for defaulters in 2022, at the moment, 29.9% of Brazilian families fall into this category, according to the National Confederation of Trade in Goods, Services and Tourism (CNC).